August 7, 2014

Argentina Files Suit against U.S. in International Court on Debt Case

Argentina filed a lawsuit against the United States at the International Court in a debt battle between the South American country and several of its creditors.

Argentina’ suit indicated that decisions made by courts in the U.S. regarding the dispute led to a violation of its sovereignty.

The country defaulted some of its re-organized debt last month after talks with hedge funds suing to recover bonds the country stopped paying in 2011 without any deal. Argentina made a payment deposit with a bond trustee financial institution. But Judge Thomas Griesa, a U.S. district judge, halted the distribution to investors since Argentina didn’t pay heed to his ruling in paying the hedge funds.

The International Court informed the U.S. government regarding Argentina’s lawsuit.

The South American government warned for weeks of taking the issue to the International Court after immensely making use of all its options in U.S. courts.

Courts in the U.S. have jurisdiction on such suits since Argentina agreed to resolve some of its bond contracts via the New York law.